Section 288.9608, Florida Statutes 2009
288.9608 Creation and funding of the guaranty account.--
(1) The corporation shall establish a debt service reserve account which contains not less than 6 months' debt service reserves from the proceeds of the sale of any bonds guaranteed by the corporation. Funds in such debt service reserve account shall be used prior to funds in the Revenue Bond Guaranty Reserve Account established in subsection (2). The corporation shall make best efforts to liquidate collateralized property and draw upon personal guarantees, and shall utilize the Revenue Bond Guaranty Reserve Account prior to use of supplemental funding for the Guaranty Reserve Account under the provisions of subsection (3).
(2)(a) The corporation shall establish an account known as the Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The corporation shall deposit a sum of money or other cash equivalents into this fund and maintain a balance in this fund, from sources other than the State Transportation Trust Fund, not less than a sum equal to 1 year of maximum debt service on all outstanding bonds, or portions thereof, of the corporation for which a guaranty has been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
(b) If the corporation determines that the moneys in the Guaranty Fund are not sufficient to meet the obligations of the Guaranty Fund, the corporation is authorized to use the necessary amount of any available moneys that it may have which are not needed for, then or in the foreseeable future, or committed to other authorized functions and purposes of the corporation. Any such moneys so used may be reimbursed out of the Guaranty Fund if and when there are moneys therein available for the purpose.
(c) The determination of when additional moneys will be needed for the Guaranty Fund, the amounts that will be needed, and the availability or unavailability of other moneys shall be made solely by the corporation in the exercise of its discretion. However, supplemental funding for the Guaranty Fund as described in subsection (3) shall be made in accordance with the investment agreement of the corporation and the Department of Transportation and the State Board of Administration.
(3)(a) If the corporation determines that the funds in the Guaranty Fund will not be sufficient to meet the present or reasonably projected obligations of the Guaranty Fund, due to a default on a loan made by the corporation from the proceeds of a bond issued by the corporation which is guaranteed pursuant to s. 288.9607(7), no later than 90 days before amortization payments are due on such bonds, the corporation shall notify the Secretary of Transportation and the State Board of Administration of the amount of funds required to meet, as and when due, all amortization payments for which the Guaranty Fund is obligated. The Secretary of Transportation shall immediately notify the Speaker of the House of Representatives, the President of the Senate, and the chairs of the Senate and House Committees on Appropriations of the amount of funds required, and the projected impact on each affected year of the adopted work program of the Department of Transportation.
(b) Within 30 days of the receipt of notification from the corporation, the Department of Transportation shall submit a budget amendment request to the Executive Office of the Governor pursuant to chapter 216, to increase budget authority to carry out the purposes of this section. Upon approval of said amendment, the department shall proceed to amend the adopted work program, if necessary, in accordance with the amendment. Within 60 days of the receipt of notification, and subject to approval of the budget authority, the Secretary of Transportation shall transfer, subject to the amount available from the source described in paragraph (c), the amount of funds requested by the corporation required to meet, as and when due, all amortization payments for which the Guaranty Fund is obligated. Any moneys so transferred shall be reimbursed to the Department of Transportation, with interest at the rate earned on investment by the State Treasury, from the funds available in the Guaranty Fund or as otherwise available to the corporation.
(c) Pursuant to s. 288.9607(7), the Secretary of Transportation and the State Board of Administration may make available for transfer to the Guaranty Fund, earnings accrued and collected upon the investment of the minimum balance of funds required to be maintained in the State Transportation Trust Fund. However, the earnings accrued and collected upon the investment of the minimum balance of funds required to be maintained in the State Transportation Trust Fund which shall be subject to transfer shall be limited to those earnings accrued and collected on the investment of the minimum balance of funds required to be maintained in the State Transportation Trust Fund for the fiscal year in which the notification is received by the secretary and fiscal years thereafter.
(4) If the corporation receives supplemental funding for the Guaranty Fund under the provisions of this section, then any proceeds received by the corporation with respect to a loan in default, including proceeds from the sale of collateral for such loan, enforcement of personal guarantees or other pledges to the corporation to secure such loan, shall first be applied to the obligation of the corporation to repay the Department of Transportation pursuant to this section. Until such repayment is complete, no new bonds may be guaranteed pursuant to this section.
(5) Prior to the use of the guaranty provided in this section, and on an annual basis, the corporation must certify in writing to the State Board of Administration and the Secretary of Transportation that it has fully implemented the requirements of this section and s. 288.9607 and the regulations of the corporation.
History.--ss. 32, 62, ch. 93-187; s. 1, ch. 93-402; s. 234, ch. 95-148; s. 104, ch. 96-320.